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For profitable companies, accountants provide two versions of Earning per Share (EPS): *Basic' and 'Diluted'. Why is 'Diluted' EPS only computed for profitable companies? Briefly,

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For profitable companies, accountants provide two versions of Earning per Share (EPS): *Basic' and 'Diluted'. Why is 'Diluted' EPS only computed for profitable companies? Briefly, how is 'Basic' EPS calculated? For Stanley, Black and Decker Inc. (and most companies), what is the most common type of item that causes 'Basic' EPS to differ from *Diluted' EPS? What are two conceptual reasons for why accountants calculate 'Diluted' EPS? (6 points)

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